Australian property fund buys 38 aged care facilities around New Zealand

PHOTO: File photo. Photo: 123RF

Australian property fund manager Centuria has bought a portfolio of New Zealand aged care homes as it looks to expand its presence in the sector.

It is paying $291 million for 38 facilities scattered around the country, currently owned by Australian private equity firm Adamantem and run by Heritage Lifecare.

Of the sites, 25 will be put into a New Zealand based healthcare property investment fund (CNZHPF) to be launched next year, with the balance to be added to an existing similar fund in Australia.

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“New Zealand benefits from high levels of aged care subsidies with a significant percentage of an individual’s care funded directly by the government along with funding from their pension,” Centuria New Zealand chief executive Mark Francis said.

“The stability of this model, and the broader regulatory environment, provides reliable revenue streams for the fund.”